Why There Aren’t More Googles – April 2008 by @paulg “So what’s the real reason there aren’t more Googles? Curiously enough, it’s the same reason Google and Facebook have remained independent: money guys undervalue the most innovative startups.”https://t.co/haZwvwp4L9 pic.twitter.com/DaQY5GxADc — Varun (@varun_mathur) September 13, 2019

Abstract We test and confirm the hypothesis that individual investors are net buyers of attention-grabbing stocks, e.g., stocks in the news, stocks experiencing high abnormal trading volume, and stocks with extreme one day returns. Attention-driven buying results from the difficulty that investors have searching the thousands of stocks they can potentially buy. Individual investors don’t […]

Abstract In traditional models, arbitrage in a given security is performed by a large number of diversified investors taking small positions against its mispricing. In reality, however, arbitrage is conducted by a relatively small number of highly specialized investors who take large positions using other people’s money. Such professional arbitrage has a number of interesting […]

Abstract This paper identifies five common risk factors in the returns on stocks and bonds. There are three stock-market factors: an overall market factor and factors related to firm size and book-to-market equity. There are two bond-market factors, related to maturity and default risks. Stock returns have shared variation due to the stock-market factors, and […]